January 4, 2013
ORDINANCE NO 669, SECOND SERIES
ORDINANCE AMENDING CHAPTER 70 OF THE CODE OF ORDINANCES FOR THE CITY OF MARSHALL
ADOPTING A FOOD AND BEVERAGE TAX
Section 1. The Common Council of the City of Marshall does ordain as follows:
Article IV. Marshall Food and Beverage Tax.
Sec. 70-100. Authority.
The Minnesota Legislature has, by Laws of Minnesota 2010 Chapter 389, Article 5, Section 6, as amended by Laws of Minnesota, 1st Special Session, Chapter 7, Article 4, Section 9, authorized the City to impose a one and one-half percent use tax on gross receipts of food and beverages sold primarily for consumption on the premises by restaurants and places of refreshment in the City of Marshall to assist in funding the new and existing facilities of the Minnesota Emergency Response and Industry Training Center and the new and existing facilities of the Southwest Minnesota Regional Amateur Sports Center. The City approved the Act in accordance with applicable law.
Sec. 70-101. Definitions.
The words, terms and phrases used in this Ordinance shall have the meaning ascribed to them in Minnesota Statues, Section 297A, consistent with the rules of Minnesota Statutes, Section 270C.171, except where the context clearly indicates otherwise. In addition, the following definitions shall apply:
Act means Laws of Minnesota 2010 Chapter 389, Article 5, Section 6, as amended.
Applicant means an individual if the license is issued to or in the name of an individual or the corporation, partnership or other entity if the license is issued to or in the name of a corporation, partnership or other entity.
City means the City of Marshall, Minnesota.
Commissioner means the Commissioner of Revenue for the State of Minnesota acting under the authority of an agreement entered into between the City and the State of Minnesota pursuant to the Act, or such other person or entity designated to administer and collect the Marshall Food and Beverage Tax.
Food and Beverages means food and beverages that are subject to tax under Minnesota Statutes, Chapter 297A, and Minnesota Rules, Chapter 8130, including Minnesota Rules, Parts 8130.4700 and 8130.4705. "Beverages" includes on-sale intoxicating liquor and fermented malt beverages, as defined or described in Minnesota Statutes, Section 340A.101, but does not include off-sale liquor sales.
Marshall Food and Beverage Tax means the tax imposed and collected pursuant to this Ordinance;
Ordinance means this ordinance in its present form and as subsequently codified in the Code of Ordinances of the City of Marshall.
Penalties and interest means penalties and interest due on taxes included in the definition of the Marshall Food and Beverage Tax.
Restaurant or place of refreshment means any of the various "food and beverage service establishments" defined in or that are part of a definition in Minnesota Statutes, Section 157.15, which serves food and beverages, including alcoholic beverages, primarily for consumption on the premises pursuant to a retail sale by a Retailer, regardless of whether the customer consumes the food or beverage at the establishment, picks it up for consumption elsewhere, or it is delivered to the customer.
Retailer or any like term means any retailer having or maintaining within the City, directly or by a subsidiary or an affiliate, a restaurant or place of refreshment located in the City, regardless of whether the Retailer is located in the City permanently or temporarily, or whether or not the Retailer or subsidiary is authorized to do business within the City.
Sec. 70-102. Food and beverage tax.
Except as otherwise provided in this Ordinance, there is hereby imposed an additional excise tax in the amount of one and one-half of one percent of the gross receipts from the sales at retail on food and beverages primarily for consumption on the premises of the retailer which are taxable, pursuant to Minnesota Statutes, Chapter 297A and occur within the City. The imposition, administration, collection and enforcement of this tax shall be governed by the provisions of Minnesota Statute Chapters 297A, 270C, and 289A.
Sec. 70-103. Separate statement; collection form purchaser; advertising no tax; minimum uniform tax collection methods.
The Marshall Food and Beverage Tax shall be stated and charged separately from the sales price or charge for service insofar as practical, and should be a debt from the purchaser to the seller recoverable at law in the same manner as other debts. In computing the tax to be collected as a result of any transaction, any amount of tax less than one-half of one cent may be disregarded and amounts of tax one-half cent or more may be considered an additional cent. If the sales price of any sale at Retail is ninety-nine cents or less, no tax shall be collected.
Sec. 70-104. Exemption certificates.
A fully completed exemption certificate taken from a purchaser to the effect that the property purchased is for resale or that the sale is otherwise exempt from the application of the tax imposed by this Ordinance will conclusively relieve the Retailer from collecting and remitting the tax to the extent the seller is also relieved of liability for the sales tax under Minnesota Statutes, Section 297A.665. A person who has obtained from the Commissioner an exemption certificate pursuant to the Minnesota Statute Section 297A may use such exemption certificate for the purposes of the sales tax imposed by the City.
Sec. 70-105. Presumption of purpose of sale.
For the purpose of the proper administration and enforcement of Section 70-XX of this Ordinance, it shall be presumed that all sales of food and beverages at retail primarily for consumption on the premises in the City are for use or other consumption in the City until the contrary is established.
Sec. 70-106. Collection of food and beverage tax at time of sale.
(a) A retailer of food and beverages subject to the tax imposed by this Ordinance shall collect the tax from the purchaser and remit it to the Commissioner at the same time that the sales tax on the food and beverages is collected and remitted, in the form and manner prescribed by the Commissioner for sales and use tax under Minnesota Statutes, Chapter 297A.
(b) Any retailer required to collect the Marshall Food and Beverage Tax and remit such tax to the Commissioner pursuant to this section shall register with the Commissioner and provide such other information as the Commissioner may require.
Sec. 70-107. Agent of retailer.
When in the opinion of the Commissioner it is necessary for the efficient administration of the tax, the Commissioner may regard any salesman, representative, trucker, peddler or canvasser as the agent of the dealer, distributor, supervisor, employer or other person under whom such salesman, representative, trucker, peddler or canvasser operated or from whom the tangible property is being sold is obtained, and may regard the dealer, distributor, supervisor, employer or other person as a Retailer for the purposes of this Ordinance.
Sec. 70-108. Effective date.
Except as otherwise provided herein, the Marshall Food and Beverage Tax authorized by this Ordinance shall apply to all sales made on or after June 1, 2013 and shall be in addition to all other taxes now in effect.
Sec.70-109. Collection and enforcement; expiration.
(a)The Marshall Food and Beverage Tax imposed by the City pursuant to this Ordinance shall be subject to the same interest, penalties, and other rules as are applicable to the State general sales tax imposed by Minnesota Statutes Chapter 289A and 297A. The Marshall Food and Beverage Tax imposed by the City pursuant to this Ordinance may be collected by the State on behalf of the City as provided by an appropriate agreement with the Minnesota Commissioner or Revenue. The funds received from the tax authorized by Section 70-102, less the costs of collection imposed by the Commissioner of Revenue, shall be placed in a fund established to pay the costs associated with the purposes of the tax as stated in Section 70-100.
(b)The tax imposed under Sec. 70-102 expires at the earlier of (1) 30 years after the tax is first imposed, or (2) when the city council determines that the amount of revenues received from the tax to pay for the capital and administrative costs of the facilities listed in Sec. 70-100 first equals or exceeds the amount authorized to be spent for the facilities plus the additional amount needed to pay the costs related to issuance of the bonds authorized under Laws of Minnesota 2010 Chapter 389, Article 5, Section 6, as amended by Laws of Minnesota, 1st Special Session, Chapter 7, Article 4, Section 9, including interest on the bonds. Any funds remaining after payment of all such costs and retirement or redemption of the bonds shall be placed in the general fund of the city. The tax imposed under Sec. 70-102 may expire at an earlier time if the city so determines by ordinance.
Sec. 70-110. Tax clearance; issuance of licenses.
(a)The City may decline to issue or renew a license for the retail sale of food and beverages in the City if the Commissioner notifies the City that the applicant for such license owes delinquent Marshall Food and Beverage Taxes as provided in this Ordinance, or penalties or interest due on such taxes.
(b) Delinquent taxes do not include a tax liability if:
(1)an administrative or court action has been filed or served which contests the
amount of validity or the liability;
(2) the appeal period to contest tax liability has not expired; or
(3) the Applicant has entered into a payment agreement and is current with the payments.
(c) A copy of the notice of delinquent taxes given to the City shall also be sent to the Applicant taxpayer. In the case of renewal of a license, if the Applicant requests a hearing in writing, within thirty (30) days of the receipt of the notice of delinquent taxes, then a contested case hearing shall be held by the Commissioner under the same procedures as provided in Minnesota Statutes, Section 270C.72 for the State Food and Beverage Tax imposed under Minnesota Statutes, Chapter 297A, provided that if a hearing must be held on the State Food and Beverage Tax, hearings may be combined.
Section 2. This Ordinance shall take effect from and after the adoption and publication.
THE COMMON COUNCIL
Robert J. Byrnes
Mayor of the City of Marshall, MN
Thomas M. Meulebroeck
City Clerk/Financial Director
Introduced on: December 4, 2012
Final Passage on: December 18, 2012
Published on: January 4, 2013
For any questions on this Ordinance please contact Ben Martig, City Administrator for the City of Marshall at 507-537-6760.